JCB Finance are prompting customers who have made taxable profits not to forget about the temporary increase in annual investment allowance (AIA) tax relief which was announced in the 2018 autumn budget.

The AIA was increased to £1m per year until 1 January 2021 to help support British businesses to invest and grow, by accelerating the relief that would usually be applied over several years.

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The cut off from benefiting from the increase is sooner than some may think. If your financial year end is March the purchase or entering into a hire purchase agreement must be before 1 April 2020.

Otherwise the allowance available would begin to reduce and progressively revert to the £200,000 and pay more tax than necessary, according to JCB Finance.

The majority of businesses including those in plant hire can claim the AIA against qualifying assets like plant and machinery or commercial vehicles placed on hire purchase.

JCB Finance is also encouraging businesses to check lead times on orders of new plant and machinery as relief is only available in the financial year that you make the purchase.

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JCB Finance’s finance director Rob Heldreich said: “The temporary increase in the Annual Investment Allowance was a welcome boost for business when announced in 2018. Time is running out to take advantage of this incentive to invest in plant and equipment. I would urge business owners to speak to their accountants and advisors to ensure they get the timing of purchases right to ensure they maximise the available tax savings.”

JBC Finance also said they are authorised and regulated by the Financial Conduct Authority but encourage people to seek advice from accountants and finance directors.

In April it was announced that JCB Finance had lent £1bn for the purchase of machinery equipment.

JCB Finance was set up in February 1970 under the name JCB Credit. Today JCB Finance provides hire purchase and leasing options for UK business customers and supports the JCB UK dealer network and has facilitated the purchase of more than 250,000 JCB machines over the past 49 years.

Including money loaned to acquire other plant and vehicles, JCB Finance has lent more than £13bn to UK businesses to help them grow and invest.